Investors who have owned stocks in the past year generally have experienced some decent gains. In fact, the SPDR S&P 500 (NYSE:SPY) total return in the past 12 months is 12.8%. But there is no question some big-name stocks performed better than others along the way.
Home Depot's Big Year: One company that has been a solid investment in the past year is home improvement retailer Home Depot Inc (NYSE:HD).
Fortunately for Home Depot investors, the company’s home improvement business was one of the few areas of the economy that boomed during the COVID-19 pandemic. Home Depot benefitted from a number of pandemic catalysts, including a red-hot housing market, low interest rates, quarantines, a lack of entertainment options and stimulus payments. While other retailers lost nearly all of their business, Home Depot's net income and revenue were actually higher in 2020 than they were in 2019.
Unfortunately, many of those pandemic tailwinds have already started going away, and rising interest rates could be one of Home Depot's biggest obstacles in 2022. Still, Home Depot is guiding for "slightly positive" sales growth in 2022 under new CEO Ted Decker, who will be taking over the position in March.
See Also: How To Trade Home Depot Following Strong Q4 Earnings: Charting The Path Ahead
At the beginning of 2020, Home Depot shares were trading at $219.08. By the beginning of March of that year, the stock was still trading at around $220 as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
Home Depot ultimately bottomed at $140.63 during the pandemic-driven March sell-off. Fortunately for Home Depot investors, the dip didn't last long.
By mid-April, Home Depot shares were back above $200. The stock made it back to new all-time highs above $250 by June. After pulling back to $246.59 in March 2021, the rally resumed, eventually pushing Home Depot shares to $420.61 in December 2021.
Home Depot In 2022, Beyond: Unfortunately, Home Depot shares have lost their momentum so far in 2022 as investigators anticipate a much more difficult environment for home improvement this year. Following Tuesday morning's post-earnings sell-off, Home Depot is trading at $318.78.
Still, Home Depot investors who bought a year ago and held on have generated an impressive return on their investment. In fact, $1,000 in Home Depot stock on Feb. 22, 2021 would be worth about $1,266 today, assuming reinvested dividends.
Looking ahead, analysts are expecting new highs for Home Depot in the next 12 months. The average price target among the 30 analysts covering the stock is $422.50, suggesting 32.6% upside from current levels.
